Technical Market Outlook:

The GBP/USD pair bounce was capped at 1.2447 and since then the market keeps moving lower. The bears were able to make a three wave ABC down cycle, so the level of 1.2288 will now act as a technical support and the bottom for the wave C. The momentum is weak and negative, which supports the short-term bearish outlook for GBP, however, any violation of the technical resistance seen at the level of 1.2335 will invalidate the bearish outlook. The deeper technical support is seen at the level of 1.2171 and 1.2210 (100 MA).

Weekly Pivot Points:

WR3 - 1.27181

WR2 - 1.25331

WR1 - 1.24338

Weekly Pivot - 1.23481

WS1 - 1.22488

WS2 - 1.21631

WS3 - 1.19781

Trading Outlook:

The bulls are temporary in control of the market and the next target for bulls is 61% Fibonacci retracement level (1.2760). So far the level of 1.2443 was too strong resistance to break through, so a potential Double Top price pattern might be in play. The confirmation of the pattern comes with the level of 1.2089 breakout with a potential target at the level of 1.1840.